Warehousing in North America – 2007

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Warehousing in North America – 2007

STOUGHTON, WI, May 21 2007 – Commercial warehousing in the United States has reached nearly $33 billion according to a new report by Armstrong & Associates. The number of commercial warehouses is estimated at 7,900 with 1.25 billion square feet of space. Growth was 9.7% for 2006.

The report contains detailed information of the contract and public warehousing markets. Operating margins, EBITDA and EBIT distributions are given for contract warehousing operations. Three year contracts are standard covering 54% of the market. Comparisons for open book versus closed book and building ownership/leasing situations have been calculated. Summaries for KPIs, value-added services and gainsharing are presented.

In the report, components of standard warehouse pricing models are given. The major variables are space utilization, labor, administrative costs and margins. This standard costing methodology is used for both contract and public warehousing. Gainsharing, single-factor carton pricing and other key pricing elements are explained. Public warehousing pallet handling charges were found to vary regionally from $5.75 to $6.79. Package handling, storage and value-added service charges are detailed in the report.

Expected operating margins and profitability measures are compared to actual results for 3PLs in the study. These relationships are reviewed in detail and in reference to the “Negotiation Zone.” Statistical analyses were performed showing the effects on profitability of open book relationships and leasing versus ownership.

The analysis emphasizes the growth of contract warehousing at the expense of public warehousing. The results indicate however, that profitability is not inherent in either of the models but owes more to company cultures and practices.

The complete study with appendices is available from Armstrong & Associates. It can be purchased by phone at +1-608-873-8929, or online at: https://www.3plogistics.com/shopsite/index.html.

About Armstrong & Associates: Armstrong & Associates, Inc. is a supply chain management consulting firm specializing in market research, mergers and acquisitions and logistics outsourcing. Armstrong & Associates publishes Who’s Who In Logistics. Recent research papers include: “Concentration – Third-Party Logistics Financial and Acquisition Results for 2006,” and “Trends in 3PL/Customer Relationships.” In addition, Armstrong & Associates maintains databases of warehousing companies, freight forwarders, third-party logistics providers, and distributors.

For more information, contact: Richard Armstrong (800) 525-3915 or e-mail Armstrong@3PLogistics.com.

Source: Armstrong & Associates, Inc.
100 Business Park Circle, Suite 202
Stoughton, WI 53589
Phone: (608) 873-8929
Fax: (608) 873-5509
Website: www.3PLogistics.com

New Latin American Third-Party Logistics (3PL) Outsourcing Guide Released

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FOR IMMEDIATE RELEASE

New Latin American Third-Party Logistics (3PL) Outsourcing Guide Released

STOUGHTON, WI – The first edition of Who’s Who in Latin American Logistics and Supply Chain Management, has just been released. This guide is the first of its kind to focus on third-party logistics providers serving the rapidly developing Latin American market and provides in-depth profiles for 88 third-party logistics providers (3PLs).

Outsourcing to 3PLs continues to grow rapidly. Global trade and increasing supply chain complexity is driving companies to identify supply chain partners with superior value-added logistics capabilities. Who’s Who in Latin American Logistics 3PL profiles include: individual company information, key personnel, IT and service capabilities. In addition, customer, industry, case studies, and important news events are reported. Information is presented in sufficient detail to allow companies to quickly develop choices for outsourcing logistics functions in Latin America. Global companies like DHL, Kuehne + Nagel and Penske Logistics are covered in addition to lesser known companies such as Coimex, GEFCO, and Servientrega.

“Our guides are a primary information source for supply chain outsourcing and management,” said Evan Armstrong, president of Armstrong & Associates. “We are pleased with the quality of our ongoing global 3PL information expansion.”

The guide contains 279 pages and is available as a downloadable PDF file report. Guides can be purchased over the phone at (800) 525-3915, or online at: https://www.3plogistics.com/shopsite/index.html.

About Armstrong & Associates: Armstrong & Associates, Inc. is a supply chain management consulting firm specializing in market research, mergers and acquisitions and outsourcing. Armstrong & Associates publishes Who’s Who In Logistics? Armstrong’s Guide to Global Supply Chain Management. Recent research papers include: An Overview of Warehousing in North America – 2007 Market Size, Major 3PLs, Benchmarking Prices and Practices and Brand Recognition RFP Activity and Expected Profit Margins for 3PLs – 2007. In addition, Armstrong & Associates maintains databases of warehousemen, freight forwarders and third-party logistics and distributors.

For more information, contact: (800) 525-3915 or e-mail armstrong@3PLogistics.com.
Armstrong & Associates, Inc.
100 Business Park Circle
Suite 202
Stoughton, WI 53589 USA
Phone: +01-608-873-8929 Fax: +01-608-873-5509
Website: www.3PLogistics.com

U.S. and Global – 3PL Financial Results – 2006

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U.S. and Global – 3PL Financial Results – 2006

STOUGHTON, WI, April 9, 2007 – Third-party logistics gross revenues for the U.S. broke $110 billion for the first time in 2006. 3PL gross revenues hit $113.6 billion, a 9.5% increase. Net revenues were $53.1 billion. EBIT and net income margins in relation to net revenue were 8.6% and 5.4% respectively. Margins for the year were down slightly due to the fourth quarter economic slowdown.

As part of its just released report, Armstrong & Associates estimates the global third-party logistics market at $391 billion. European 3PL revenues are estimated at $139 billion.

For the U.S. market, International Transportation Management (ITM), which includes major components of freight forwarding and global supply chain management, had net revenue increases of 17.7%. Kuehne + Nagel, Expeditors, DHL Global and APL all had net income margins of 10% or greater compared to net revenue. ITM growth is primarily a reflection of continued economic expansion in China and the Asia Pacific markets.

Domestic Transportation Management (DTM), including freight brokerage, posted a 12% gain in net revenues (gross margin). Gross revenues (turnover) were $33.8 billion. BAX, BNSF, C.H. Robinson, Meridian IQ and NFI grew by more than 20%. Hub, Penske, Ryder and Werner grew by 10% or more. After-tax Net margin for DTM was 11.1%

DTM net revenue growth slipped from 18% in 2005 and net income margin dropped by 1%. We attribute these changes to the U.S. economic slowdown; they are temporary downturns and have no significant long term importance for key players in DTM. Despite the slowdown, C.H. Robinson still ended the year with net revenues of $1.1 billion and a net income margin of 24.7%. BNSF Logistics, Hub, NFI and Werner all had double digit net income margins.

Table 1. Revenues and Profitability by 3PL Segment – 2006
2222

1 Total turnover (gross revenue) for the 3PL industry in the U.S. is estimated at $113.6 billion; $3 billion is included for the contract logistics software segment.

The complete report for 2006 can be obtained online at: https://www.3plogistics.com/shopsite/index.html. Armstrong & Associates’ Extended Information Service subscribers will receive the report next week.

The report can be purchased over the phone or online at: https://www.3plogistics.com/shopsite/index.html.

About Armstrong & Associates: Armstrong & Associates, Inc. is a supply chain management consulting firm specializing in market research, mergers and acquisitions and outsourcing. Armstrong & Associates publishes Who’s Who In Logistics? Armstrong’s Guide to Global Supply Chain Management. Recent research papers include An Overview of Warehousing in North America – 2007 Market Size, Major 3PLs, Benchmarking Prices and Practices and Brand Recognition, RFP Activity and Expected Profit Margins for 3PLs – 2007. In addition, Armstrong & Associates maintains databases of warehousemen, freight forwarders and third-party logistics and distributing companies.

For more information, contact: (800) 525-3915 or e-mail armstrong@3PLogistics.com.

Armstrong & Associates, Inc.
100 Business Park Circle
Suite 202
Stoughton, WI 53589
Phone: (608) 873-8929 Fax: (608) 873-5509
Website: www.3PLogistics.com

New Market Research on Brands, Proposals and Profits Released

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New Market Research on Brands, Proposals and Profits Released

STOUGHTON, WI – A recent analysis of third-party logistics providers reports on brand recognition, request for proposals and expected operating margins. Based on a survey of 3PL executives, the report updates a similar study from five years ago.

UPS SCS and DHL/Exel are identified as the most recognized brands. C.H. Robinson, Ryder and Menlo Worldwide lead a second group with well-recognized brands.

The average 3PL surveyed has 11 salesmen and receives over 60 requests for proposals a year. 62% of the yearly increase in business is generated from the RFI/RFP process. 38% of new business is from direct sales.

The report includes a table of expected operating profit margins. The most significant changes are for transportation management services, underpinning supply chains. Gainsharing is also discussed.

The report is available at https://www.3plogistics.com/shopsite/index.html or by phone at 800-525-3915.

About Armstrong & Associates:

Armstrong & Associates, Inc. is a supply chain management consulting firm specializing in market research, mergers and acquisitions, supply chain systems benchmarking, and logistics outsourcing. Armstrong & Associates publishes Who’s Who in Logistics. Recent research papers include: “An Overview of Warehousing in North America – 2006” and “Dedicated Contract Carriage: The Evolution of New Models.” In addition, Armstrong & Associates maintains databases of warehousing companies, freight forwarders, third-party logistics providers, and distributors.

For more information please contact:

Richard or Evan Armstrong (800) 525-3915 or e-mail Dick@3PLogistics.com or Evan@3PLogistics.com.

Source:
Armstrong & Associates, Inc.
100 Business Park Circle, Suite 202
Stoughton, WI 53589 USA
Fax: (608) 873-5509
Website: www.3PLogistics.com

6th Annual Analysis of Third-Party Logistics Provider (3PL) Customers Identifies Trends and Market Segments

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6th Annual Analysis of Third-Party Logistics Provider (3PL) Customers Identifies Trends and Market Segments

STOUGHTON, WI – Two-thirds of domestic Fortune 500 companies now use 3PLs for logistics and supply chain functions according to a new in-depth research report “Trends in 3PL/Customer Relationships” just issued by Armstrong & Associates. The report utilizes Armstrong & Associates’ proprietary database of 2,864 3PL customer relationships and provides detailed information on the top outsourcers to 3PLs, service demand and market size by industry segment.

According to the report, General Motors, Wal-Mart, DaimlerChrysler, and Ford Motor each use 30 or more 3PLs. The report also quantifies the Global Fortune 500 3PL market at $158.1 billion for 2005. Automotive 3PL customers spent an estimated $35.8 billion with 3PLs.

The average customer is utilizing each 3PL for three distinct services. The primary 3PL services are transportation management (20.5%), warehousing (19.3%), and value-added services (18.5%). Armstrong & Associates’ report is based on 9,004 individual services.

Commenting on the report, Evan Armstrong, president of Armstrong & Associates said, “We feel that this analysis of customer relationships is our best to date and builds upon our previous reports. The greatest penetration of automotive accounts is by European 3PLs, Ryder, Penske, and Menlo. Retailing relationships are led by Maersk, Meridian IQ and DHL. BAX is the leader for Fortune’s technology sector.”

The complete report is available from Armstrong & Associates online at www.3PLogistics.com.

About Armstrong & Associates:

Armstrong & Associates, Inc. is a supply chain market research and consulting firm specializing in 3PL market analysis, provider benchmarking, strategic planning, mergers and acquisitions, and logistics outsourcing. Armstrong & Associates publishes Who’s Who In North American Logistics and Supply Chain Management and Who’s Who In International Logistics – Armstrong’s Guide to Global Supply Chain Management. Recent research papers include “Warehousing in North America – 2006 Market Size, Major 3PLs, Benchmarking Prices and Practices”. In addition, Armstrong & Associates maintains databases of warehousemen, freight forwarders and third-party logistics and transportation companies.

For more information please contact:

Richard or Evan Armstrong (800) 525-3915 or e-mail Dick@3PLogistics.com or Evan@3PLogistics.com.

Source:
Armstrong & Associates, Inc.
100 Business Park Circle, Suite 202
Stoughton, WI 53589 USA
Fax: (608) 873-5509
Website: www.3PLogistics.com

New Edition of Leading Third-Party Logistics (3PL) Outsourcing Guide Released

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FOR IMMEDIATE RELEASE

New Edition of Leading Third-Party Logistics (3PL) Outsourcing Guide Released

STOUGHTON, WI – The 14th edition of the leading 3PL outsourcing guide, Who’s Who In Logistics, has just been released. The new edition, in two volumes, has been expanded with in-depth profiles of 192 third-party logistics companies.

Who’s Who In Logistics profiles individual company financial information, key personnel, IT usage and service capabilities. In addition, editorial evaluations, case studies and important news events are reported. Information is presented in sufficient detail to allow companies to quickly develop choices for outsourcing. For the first time, Armstrong & Associates has included information on total ocean containers and air freight tonnes handled.

Global companies like UPS SCS, DHL, FedEx, Kuehne + Nagel and PWC are covered extensively. Capable mid-sized companies like BNSF Logistics, GENCO, Luis Simoes, KWE, Ozburn-Hessey and similar companies are given equal billing.

“Our guides are a primary information source for supply chain outsourcing and management,” said Richard Armstrong, chairman of Armstrong & Associates. “We are pleased with the quality of our Asian and European information expansion. The inclusion of our industry summary statistics adds real value for our readers. The new option of purchasing the volumes separately should be helpful to buyers.”

The two volumes contain over 900 pages. They are available as PDF files or as an on-line subscription. On-line subscribers receive the PDF files as part of their purchases.

Both guides can be purchased over the phone at (800) 525-3915, or online at: https://www.3plogistics.com/shopsite/index.html.

About Armstrong & Associates:

Armstrong & Associates, Inc. is a supply chain management consulting firm specializing in market research, mergers and acquisitions, strategic planning and outsourcing. Armstrong & Associates also publishes “Warehousing in North America.”

Source:

Armstrong & Associates, Inc.
100 Business Park Circle
Suite 202
Stoughton, WI 53589
Phone: (608) 873-8929 Fax: (608) 873-5509
Website: www.3PLogistics.com

Warehousing in North America – 2006

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FOR IMMEDIATE RELEASE

Warehousing in North America – 2006

STOUGHTON, WI, May 22, 2006 – A major white paper on warehousing has just been released. The report, “Warehousing in North America – 2006,” benchmarks prices and practices. In addition it includes basic industry statistics and major player information.

The author reports that U.S. commercial warehousing revenues are $28.8 billion. “The industry grew 9.5% last year and we forecast another strong year for 2006,” said Richard Armstrong, author of the report.

The report benchmarks contract and public warehousing in separate sections. Contract warehouse relationships are measured by operating margins, EBITDA and EBIT margins. Regional differences are reported for both contract and public operations. Key performance indicators (KPIs) and value-added services frequencies are included.

Lengths of contracts reviewed in the study were from 1-7 years. The study found that most contracts have 3 and 5 year terms.

In the report, components of standard warehouse pricing models are given. The major variables are space utilization, labor, administrative costs and margins. This standard costing methodology is used for both contract and public warehousing. Gain-sharing, single-factor carton pricing and other key pricing elements are explained. Public warehousing pallet handling charges were found to vary regionally from $5.75 to $6.79. Package handling, storage and value-added service charges are detailed in the report.

Expected operating margins and profitability measures are compared to actual results for 3PLs in the study. These relationships are reviewed in detail and in reference to the “Negotiation Zone.” Statistical analyses were performed showing the effects on profitability of open book relationships and leasing versus ownership.

“We undertook this study originally because we had a Japanese consulting client who wanted to know what and how 3PLs and commercial warehouses were charging for their services in the U.S.,” said Armstrong. “There was not a good source available. Our report is the only public explanation of what the real prices are in warehousing in North America.”

The analysis emphasizes the growth of contract warehousing at the expense of public warehousing. The results indicate however, that profitability is not inherent in either of the models but owes more to company cultures and practices.

The complete study with appendices is available from Armstrong & Associates. It can be purchased by phone at +1-608-873-8929, or online at: https://www.3plogistics.com/shopsite/index.html.

About Armstrong & Associates: Armstrong & Associates, Inc. is a supply chain management consulting firm specializing in market research, mergers and acquisitions and logistics outsourcing. Armstrong & Associates publishes Who’s Who In Logistics. Recent research papers include: “Is Bigger Better? Third-Party Logistics Financial and Acquisition Results for 2005,” and “Trends in 3PL/Customer Relationships.” In addition, Armstrong & Associates maintains databases of warehousing companies, freight forwarders, third-party logistics providers, and distributors.

For more information, contact: Richard Armstrong (800) 525-3915 or e-mail Armstrong@3PLogistics.com.

Source:

Armstrong & Associates, Inc.
100 Business Park Circle
Suite 202 Stoughton, WI 53589
Phone: (608) 873-8929
Fax: (608) 873-5509
Website: www.3PLogistics.com

5th Annual Analysis of Third-Party Logistics Provider (3PL) Customers Identifies Trends and Market Segments

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5th Annual Analysis of Third-Party Logistics Provider (3PL) Customers Identifies Trends and Market Segments

STOUGHTON, WI – 64% of domestic Fortune 500 companies use 3PLs for logistics and supply chain functions according to the new Armstrong & Associates, Inc. in-depth research report “Trends in 3PL/Customer Relationships”. The report utilizes Armstrong & Associates’ proprietary database of 2,724 customer relationships. The report provides insights into the top outsourcers to 3PLs, service trends and market sizes by industry segment.

According to the report, General Motors, DaimlerChrysler and Wal-Mart each use 30 or more 3PLs. The report also quantifies the global Fortune 500 3PL market at $98.4 billion for 2004. The largest 3PL expenditures by industry vertical are for automotive ($32.1 billion) and technology ($30.9 billion). Additionally, 3PL customers are utilizing 3PLs for an average of three services. The primary 3PL services provided were led by transportation management (22.3%), warehousing (21.0%), value-added services (19.3%) and international 3PL services (8.0%). Armstrong & Associates’ report is based on over 8,000 individual service relationships provided through May of 2005.

In commenting on the report, Richard Armstrong, president of Armstrong & Associates said, “We feel that this analysis of customer relationships for 195 top 3PLs is our best to date and builds upon our reports from the past four years. The greatest penetration of automotive accounts is by Rudolph, Thiel, and TNT. Retailing relationships are led by Exel, Meridian IQ and Genco. DHL, UPS and Menlo are the leaders for Fortune’s technology sector.”

The complete report is available from Armstrong & Associates online at https://www.3plogistics.com/shopsite/index.html.

About Armstrong & Associates:

Armstrong & Associates, Inc. is a supply chain management consulting firm specializing in market research, mergers and acquisitions and outsourcing. Armstrong & Associates publishes Who’s Who In North American Logistics and Supply Chain Management and Who’s Who In International Logistics – Armstrong’s Guide to Global Supply Chain Management. Recent research papers include “Warehouse Practices and Prices in North America” and “Bigger and Better – 3PL Financial Results – 2004”. In addition, Armstrong & Associates maintains databases of warehousemen, freight forwarders and third-party logistics providers, and transportation companies.

For more information, contact:

Richard or Evan Armstrong (800) 525-3915 or e-mail Dick@3PLogistics.com or Evan@3PLogistics.com.

Source:
Armstrong & Associates, Inc.
100 Business Park Circle, Suite 202
Stoughton, WI 53589 USA
Fax: (608) 873-5509
Website: www.3PLogistics.com

Major International 3PL Outsourcing Guide Released

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FOR IMMEDIATE RELEASE

Major International 3PL Outsourcing Guide Released

STOUGHTON, Wis., June 1, 2005 — A detailed guide to major international 3PLs and supply chain managers has been released by Armstrong & Associates. Who’s Who In International Logistics – Armstrong’s Guide to Global Supply Chain Management is a buyer’s guide covering logistics services on every continent.

Who’s Who In International Logistics profiles individual company financial information, key personal, IT usage and service capabilities. In addition, editorial evaluations, case studies and important news events are given. Information is presented in sufficient detail to allow companies to quickly develop choices for outsourcing.

Global companies like UPS SCS, DHL, FedEx, Kuehne + Nagel, TNT and Exel are covered extensively. Capable mid-sized companies like SembCorp, Wincanton, Kerry Logistics, Luis Simoes, KWE, Wice and similar companies are given equal billing.

The international guide and its companion, Who’s Who In North American Logistics and Supply Chain Management, comprise the 13th edition of Armstrong logistics guides. The North American guide is a key resource for the U.S. and its neighbors Canada and Mexico. The North American guide covers 115 3PLs.

“Our guides are a primary information source for supply chain outsourcing and management,” said Richard Armstrong, president of Armstrong & Associates. “We are pleased with the quality of our Asian and European information expansion. The inclusion of our industry summary statistics adds real value for our readers. The new option of purchasing the volumes separately should be helpful to buyers.”

The two volumes contain over 800 pages. They are available as PDF files which will be updated twice during the 13th edition, or as an on-line subscription. On-line subscribers receive the PDF files as part of their purchases.

Both guides can be purchased over the phone or online at: https://www.3plogistics.com/shopsite/index.html.

About Armstrong & Associates:

Armstrong & Associates, Inc. is a supply chain management consulting firm specializing in market research, mergers and acquisitions, supply chain systems benchmarking, and logistics outsourcing. Recent research papers include: “An Overview of Warehousing in North America – Market Size, Major 3PLs, Benchmarking Prices and Practices” and “Trends in Third-Party Logistics Provider Supply Chain Systems Purchasing, Deployment and Use”. In addition, Armstrong & Associates maintains databases of warehousing companies, freight forwarders, third-party logistics providers, and distributors.

For more information, contact: (800) 525-3915 or e-mail armstrong@3PLogistics.com.

Armstrong & Associates, Inc.
100 Business Park Circle
Suite 202
Stoughton, WI 53589
Phone: (608) 873-8929 Fax: (608) 873-5509
Website: www.3PLogistics.com

Bigger and Better – 3PL Financial Results – 2004

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FOR IMMEDIATE RELEASE

Bigger and Better – 3PL Financial Results – 2004

STOUGHTON, WI March 23, 2005 – Third-party logistics service providers (3PLs) had a great year in 2004. Total revenues for the U.S. 3PL market rose to $89.4 billion, an increase of 16.3%. The compound annual growth rate for U.S. third-party logistics is 14.2% since 1996. Leading the way was international transportation management (ITM), the core component for global supply chain management. ITM increased 34% for U.S. 3PLs. This significant growth reflected a large increase in global product movements to the U.S., particularly from China. Tight vessel, airfreight and truck capacities allowed for significant price increases. Better net revenues and income margins followed suit.

Net revenues (gross margin) for U.S. market international transportation supply chain managers (ITM) increased 17.2% for 2004 to $7.8 billion. After- tax profit margins improved to 7.1%, three percentage points better than the previous year. These margins are similar to 1998. If current trends continue for another year, the ITM segment will return to its traditional after-tax net income margins of 9-10%. Leading the way in ITM are Expeditors International, UTi, DHL Danzas and Kuehne & Nagel. All of these companies have more than $1 billon in U.S. turnover. Their after-tax income margins range from over 17% (Expeditors) to 9% (Kuehne & Nagel).

Major growth and even better profitability occurred in U.S. domestic transportation management (DTM). Leading the DTM segment is C.H. Robinson, one of the most profitable companies in the U.S. Robinson’s net revenue increased to $661 million and its after-tax margin was 20.8%. Turnover for DTM increased to $25 billion, a 16.8% increase. After-tax net income margin improved to 11.6%. Other leaders in this segment include Landstar and Schneider Logistics.

Table 1. Revenues and Profitability by Segment – 2004
Turnover
(Gross
Revenue) Net Revenue Net Revenue
3PL Segment ($ Billions) ($ Billions) Growth Net Income
Domestic Transportation
Management 25.0 3.3 15.8% 11.6%
International
Transportation
Management 31.5 7.8 17.2% 7.1%
Dedicated Contract
Carriage 8.7 8.5 12.3% 4.4%
Value Added Warehouse
Distribution 21.2 17.3 11.8% 2.8%
86.4(1) 36.9 13.5% 5.0%
(1) Total turnover for the 3PL industry in the U.S. is estimated at
$89.4 billion. $3 billion is included for the logistics software
segment.

Dedicated contract carriage (DCC) reached a new high of $8.7 billion in 2004. The previous best year for DCC was 2000. Revenues contracted for 2001 and 2002. Tight trucking capacity in the U.S. helped this segment. Cardinal Logistics, NFI, Penske and Werner had increases of over 20%. Schneider Dedicated and J.B. Hunt, the largest players, had double-digit growth.

Value-added warehousing and distribution (VAWD) increased by 7% in 2004. Since 1999 this segment more than doubled with a compound annual growth rate of 15.3%. VAWD continued to grow solidly during the economic malaise of 2001- 2002. The downside for VAWD is that its profit margins, though they improved in 2004, are still meager compared to transportation management. The net income after tax percentage improved from 2.7% last year, to 2.8%.

The complete report for 2004 can be obtained by contacting Armstrong & Associates. Armstrong & Associates’ Extended Information Service subscribers will receive the report next week.

The report can be purchased over the phone or online at: https://www.3plogistics.com/shopsite/index.html.

About Armstrong & Associates:

Armstrong & Associates, Inc. is a supply chain management consulting firm specializing in market research, mergers and acquisitions, supply chain systems benchmarking, and logistics outsourcing. Armstrong & Associates publishes Who’s Who in Logistics?. Recent research papers include: “An Overview of Warehousing in North America – Market Size, Major 3PLs, Benchmarking Prices and Practices” and “Trends in Third-Party Logistics Provider Supply Chain Systems Purchasing, Deployment and Use”. In addition, Armstrong & Associates maintains databases of warehousing companies, freight forwarders, third-party logistics providers, and distributors.

For more information, contact: (800) 525-3915 or e-mail armstrong@3PLogistics.com.

Armstrong & Associates, Inc.
100 Business Park Circle
Suite 202
Stoughton, WI 53589
Phone: (608) 873-8929 Fax: (608) 873-5509
Website: www.3PLogistics.com

New Market Research Study Highlights Trends in Third-Party Logistics Provider (3PL) Supply Chain Systems Use, Deployment, and Purchasing

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FOR IMMEDIATE RELEASE

New Market Research Study Highlights Trends in Third-Party Logistics Provider (3PL) Supply Chain Systems Use, Deployment, and Purchasing

STOUGHTON, WI March 8, 2005 – When deciding which supply chain systems 3PLs are considering purchasing, G-Log comes in first followed by Manhattan, i2, Manugistics, and RedPrairie, according to a recently completed market research report “Trends in Third-Party Logistics Provider Supply Chain Systems Purchasing, Deployment and Use “. This latest report from Armstrong & Associates, Inc. provides detailed information on trends in the 3PL supply chain systems market. The ongoing strategy of 3PLs developing a core systems “backbone” is analyzed and estimates of the total potential U.S. 3PL supply chain systems market are provided.

The report includes survey results from 3PLs in three size segments. It identifies current satisfaction levels for 3PLs with supply chain systems vendors and systems implementations. 3PLs preferences for systems pricing (transactional, subscription, upfront) and deployment methods such as traditional license arrangements, hosted solutions, and ASP models are detailed. Information on various warehouse management systems (WMS) and transportation management systems (TMS) is provided.

The complete study is available from Armstrong & Associates, Inc. a supply chain market research and consulting firm. “To date, there has been no concerted effort to analyze this market in a detailed fashion. With our ongoing focus on 3PL market research, it made sense for us to perform this study”, said Evan Armstrong vice president of Armstrong & Associates.

The report can be purchased over the phone or online at: https://www.3plogistics.com/shopsite/index.html.

About Armstrong & Associates:

Armstrong & Associates, Inc. is a supply chain management consulting firm specializing in market research, mergers and acquisitions, supply chain systems benchmarking, and logistics outsourcing. Armstrong & Associates publishes Who’s Who in Logistics?. Recent research papers include: “An Overview of Warehousing in North America – Market Size, Major 3PLs, Benchmarking Prices and Practices” and “Global Logistics Services Providers II”. In addition, Armstrong & Associates maintains databases of warehousing companies, freight forwarders, third-party logistics providers, and distributors.

For more information, contact: Evan Armstrong (800) 525-3915 or e-mail Evan@3PLogistics.com.

Source:

Armstrong & Associates, Inc.
100 Business Park Circle
Suite 202
Stoughton, WI 53589
Phone: (608) 873-8929 Fax: (608) 873-5509
Website: www.3PLogistics.com

U.S. Warehouse Market Size and Benchmark Pricing Report Released

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FOR IMMEDIATE RELEASE

U.S. Warehouse Market Size and Benchmark Pricing Report Released

STOUGHTON, WI, January 10, 2005 – A recently completed report on the United States warehousing market, complete with price and profit benchmarks, has been released. “An Overview of Warehousing in North America – Market Size, Major 3PLs, Benchmarking Prices and Practices”, estimates the U.S. commercial warehousing market at $25.7 billion. After-tax profitability was reported at 2.7%.

A major part of the report is dedicated to warehouse price and practices benchmarks. Contract and public warehousing are addressed in separate sections. Contract warehouse relationships are measured by operating margins, EBITDA and EBIT. Regional differences are reported for both contract and public operations.

Lengths of contracts reviewed in the study were from 1-7 years. The study found that most contracts have 3 and 5 year terms. Only 9% of contracts were for 1 year and 14% were for more than 5 years.

In the report, components of standard warehouse pricing models are given. The major variables are space utilization, labor, administrative costs and margins. This standard costing methodology is used for both contract and public warehousing. Gain-sharing, single-factor carton pricing and other key pricing elements are explained. Public warehousing pallet handling charges were found to vary regionally from $4.70 to $5.86. Package handling, storage and value-added service charges are detailed in the report.

Expected operating margins and profitability measures are compared to actual results for 3PLs in the study. These relationships are reviewed in detail and in reference to the “Negotiation Zone.” Statistical analyses were performed showing the effects on profitability of open book relationships and leasing versus ownership.

“We undertook this study because we had a Japanese consulting client who wanted to know what and how 3PLs and commercial warehouses were charging for their services in the U.S.,” said Richard Armstrong, president of Armstrong & Associates, a supply chain management consultancy. “There was not a good source available and the only way to get the information was to put out an RFP. Our report is the only public explanation of what the real prices are in warehousing in North America.”

The analysis emphasizes the growth of contract warehousing at the expense of public warehousing. The results indicate however, that profitability is not inherent in either of the models but owes more to company cultures and practices.

The complete study with appendices is available from Armstrong & Associates. It can be purchased over the phone or online at: https://www.3plogistics.com/shopsite/index.html.

About Armstrong & Associates:

Armstrong & Associates, Inc. is a supply chain management consulting firm specializing in market research, mergers and acquisitions and logistics outsourcing. Armstrong & Associates publishes Who’s Who In Logistics?. Recent research papers include: “Warehousing in the United States” and “Global Logistics Services Providers II”. In addition, Armstrong & Associates maintains databases of warehousing companies, freight forwarders, third-party logistics providers, and distributors.

For more information, contact: Richard Armstrong (800) 525-3915 or e-mail Dick@3PLogistics.com.

Source:

Armstrong & Associates, Inc.
100 Business Park Circle
Suite 202 Stoughton, WI 53589
Phone: (608) 873-8929
Fax: (608) 873-5509
Website: www.3PLogistics.com

China Logistics Market Enjoying Spectacular Growth

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China Logistics Market Enjoying Spectacular Growth

STOUGHTON, WI, November 1, 2004 – China’s logistics and express industry is enjoying a period of spectacular growth helped by economic development and the increased acceptance of out-sourcing by Chinese manufacturers and retailers. However, there are a number of challenges on the horizon ranging from deep seated structural problems to the unpalatable prospect of an economic ‘hard landing’. These are the main findings of Transport Intelligence’s latest report, China Logistics 2004, which examines the country’s logistics industry, profiles the key air, sea, forwarding and logistics players and looks at the sector’s prospects for future growth.

According to the report, the Chinese logistics industry will expand with a compound annual growth rate of 33% up to 2007. This will be supported by the outsourcing of logistics functions as the practice gradually gains credibility and as more sophisticated logistics companies enter the market.

However, the outlook for the medium term is by no means as upbeat. China’s economic growth has papered over major structural problems which need to be addressed if the development is to be continued. These include weak transport; information and communications infrastructure outside economic zones; a culture of regulation and bureaucracy; fundamental problems of energy supply; high transport and logistics costs; a poorly educated and badly trained work force as well as high regional imbalances of trade (both domestically and internationally). (see Appendix 1)

Worse still, the economy has yet to go through a major restructuring which will be needed to transform its many state owned enterprises (SOEs) into a thriving private sector. One problem for the country is that increased economic activity has led to rising labor costs (especially in key regions of manufacturing and logistics). This will increase pressure on over-manned, inefficient public sector companies and eventually lead to higher levels of unemployment with severe economic consequences. This will be compounded by foreign competitors entering the market in line with China’s WTO commitments.

Commenting on the markets prospects, John Manners-Bell, the report’s author, added:

“If China’s economy does have a ‘hard landing’ as many economists predict, there will be a major impact on air, sea, express and logistics companies which have over invested in capacity in the region. For the time being though the fragmented, low value-add nature of the Chinese transport market will still provide huge opportunities for foreign, and the more developed domestic players, to grab market share. There is no doubt that China will eventually become the world’s industrial powerhouse. However, its transformation will not be as straightforward as many logistics companies would like to hope.”

An appendix ‘Ten key challenges for the Chinese logistics industry,’ setting out the main threats to future development, is attached to this press release.

China Logistics Report 2004 can be purchased form Armstrong & Associates, Inc. as a download for $995.

About Armstrong & Associates, Inc.:

Armstrong & Associates, Inc. is a supply chain management consulting firm specializing in third-party logistics (3PL) industry analysis, market research, mergers and acquisitions and logistics outsourcing. Armstrong & Associates publishes Who’s Who In Logistics? Armstrong’s Guide to Global Supply Chain Management. Recent reports include Warehousing in the United States, Global Logistics Services Providers II, Warehouse Prices and Practices in North America – Contract and Public Benchmarks, 3PLs – A Comparative Financial Analysis of U.S. Results for FY 2003 and Customers of 3PLs. Armstrong & Associates, Inc. and Transport Intelligence of the UK have a strategic relationship.

Appendix 1 (from the Report)

Ten key challenges for the Chinese logistics industry

1. Poor infrastructure

One of the key challenges facing the Chinese logistics industry is the state of the country’s transport infrastructure. At present, despite some large scale projects, companies in the region complain of insufficient integration of transport networks, IT, warehousing and distribution facilities. Outside of the main economic centers, the logistics sector tends to be of low quality, highly inefficient and with little technological competence.

2. Regulation

Although it is slowly opening up to outside competition, the Chinese transportation and logistics market is one of the most highly regulated in the world. Regulation exists at a number of different tiers, imposed by national, regional and local authorities. Regulations often differ from city to city, hindering the creation of national networks.

3. Bureaucracy & Culture

Getting the go ahead for any logistics project in China still relies heavily on the strength of contacts which companies have within Chinese bureaucracy. There are still high levels of ‘cronyism’ which require companies to build links with members of the Chinese Communist Party at various levels. Many western companies also find it difficult to repatriate profits which have been generated in the country.

4. Poor training

Training in both the third party logistics sector and the manufacturing and retailing sectors is very weak both at a practical level ie IT, driving and warehouse as well as at a higher strategic level. Many do not realize the benefits which best practice in logistics can bring to their companies and are therefore not interested in the opportunities of outsourcing or of supply chain management techniques. This has been compounded by the failure of the government and other regulatory authorities to promote logistics programs.

5. Information and communications technology

Outside of the main logistics centers, information and communications technology and infrastructure is unreliable. There are a lack of IT standards and poor systems integration and equipment. At a very basic level, the consistent supply of energy is also problematic leading to interruptions to communications through power outage.

6. Undeveloped domestic industry

The Chinese logistics sector is fragmented and dominated by commoditised and low quality transport and warehousing, providing little base on which to build a modern industry. This also makes it difficult to meet the growing supply chain demands for industrial and commercial enterprises.

7. High transport costs

Some estimates put the cost of transporting goods in China at up to 50% more than in developed regions such as Japan, Europe and North America. These costs are increased by high tolls on roads. Logistics costs (including warehousing, distribution, inventory holding, order processing etc) are estimated to be two to three times the norm and in excess of 20%.

8. Poor warehousing and storage

Poor facilities and management are to blame for high levels of loss, damage and deterioration of stock, especially in the perishables sector. For instance, it is estimated that 30% of China’s fruit and vegetable harvest is damaged every year by the inability to store and move it appropriately costing $1billion for this sector alone. Part of the problem is insufficient specialist equipment, ie proper refrigerated storage and containers, but it is also partly down to lack of training.

9. Regional imbalance

China’s economy is characterized by wide variances in levels of economic activity and development. This is problematic in terms of distribution as there is a major imbalance of goods flows from the developed east of the country to the more undeveloped west. This has resulted in difficulties in finding backloads, leading to higher costs for Chinese haulage companies which are then passed on to their clients. Internationally these imbalances also exist between China and the rest of the world, leading to difficulties in re-positioning empty containers.

10. Domestic trade barriers

Although China’s accession to the WTO has lowered trade barriers such as tariffs and quotas for international shipments, there are still problems related to moving goods around China itself. Goods can be subject to unofficial border tolls when moving between provinces. This is particularly evident when shipping from an inland manufacturing location to a port city or vice versa.

For more information, contact:

Richard Armstrong (800) 525-3915 or e-mail Dick@3PLogistics.com.

To purchase the report go to: https://www.3plogistics.com/shopsite/index.html.

Source:

Armstrong & Associates, Inc.
100 Business Park Circle, Suite 202
Stoughton, WI 53589
Fax: (608) 873-5509
Website: www.3PLogistics.com

GM, Wal-Mart Use Most 3PLs

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GM, Wal-Mart Use Most 3PLs

STOUGHTON, WI – General Motors and Wal-Mart each use over 30 third-party logistics service providers according to a recent report by Armstrong & Associates. The report, based on Armstrong & Associates’ analysis of its proprietary database, indicates that over 80% of Fortune 100 companies use 3PLs for logistics and supply chain functions. The report also indicates that the domestic Fortune 500 spend $62 billion a year with 3PLs. The largest expenditures by vertical are for retailing ($15.8 billion), technology ($14.2 billion) and automotive ($11.3 billion).

According to the report, the primary 3PL services were lead by transportation management, which increased 38%. Major increases were also made in warehousing, value-added services and international 3PL services. Armstrong & Associates’ report is based on over 6,500 services provided through first quarter 2004. The number of services increased 14% from the previous year.

In commenting on the report, Richard Armstrong, president of Armstrong & Associates, said “The greatest penetration of automotive accounts is by TNT and Exel. Retailing relationships are lead by Genco, USF Logistics and TBG/Exel. UPS and Menlo are the leaders for Fortune’s technology sector.”

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The complete report is available from Armstrong & Associates.

About Armstrong & Associates:

Armstrong & Associates, Inc. is a supply chain management consulting firm specializing in market research, mergers and acquisitions and outsourcing. Armstrong & Associates publishes Who’s Who In Logistics? Armstrong’s Guide to Global Supply Chain Management. Recent research papers include: Warehousing in the United States, Global Logistics Services Providers II, Warehouse Prices and Practices in North America – Contract and Public Benchmarks and 3PLS – A Comparative Financial Analysis of U.S. Results for FY 2003.

For more information, contact:

Richard Armstrong (800) 525-3915 or e-mail Dick@3PLogistics.com.

Source:

Armstrong & Associates, Inc.
100 Business Park Circle, Suite 202
Stoughton, WI 53589
Fax: (608) 873-5509
Website: www.3PLogistics.com

3PL Revenue Statistics, Employment and IT in New SCM Guide

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3PL Revenue Statistics, Employment and IT in New SCM Guide

STOUGHTON, WI – The new edition of Who’s Who In Logistics? Armstrong’s Guide to Global Supply Chain Management contains more information than any other source on industry revenue trends, employment, IT and 3PL capabilities. The new edition is also a detailed buyer’s guide of 3PL services. Who’s Who In Logistics was designed to allow companies who want to outsource to easily develop a pool of prospects.

Profiles for each company include financial information, key personnel, TMS, WMS, SCS, case studies and the author’s evaluation. Editor’s evaluations cover strengths, weaknesses and overall capabilities.

3PLs covered include global companies like UPS SCS, Exel, DHL, FedEx, Kuehne & Nagel, TNT and Nippon Express. Special coverage is given to U.S. regional companies.

“Our guide has become the leading source for logistics information,” said Richard Armstrong, president of Armstrong & Associates. “By significantly expanding the international sections, we have made it much easier for people to find 3PLs and 4PLs who can do the job. The inclusion of our industry summary statistics for the U.S. adds real value for our readers.”

The 12th edition of “Who’s Who In Logistics?” is published in two volumes. The guide is over 600 pages in length. It sells for $495 (hard copy only), or $1,495 (hardcopy and on-line subscription).

About Armstrong & Associates: Armstrong & Associates, Inc. is a supply chain management consulting firm specializing in market research, mergers and acquisitions and outsourcing.

For more information, contact: Richard Armstrong (800) 525-3915 or e-mail Dick@3PLogistics.com.

Source:

Armstrong & Associates, Inc.
100 Business Park Circle
Suite 202 Stoughton WI 53589
Fax: (608) 873-5509
Website: www.3PLogistics.com

Key Asia Pacific Logistics Report Available

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Key Asia Pacific Logistics Report Available

STOUGHTON, WI – A major report on Asia Pacific logistics has been released by Armstrong & Associates and TI. The report is a detailed analysis by market and country.

Sector analysis, logistics providers, freight transport and country profiles allow close examination of Asian logistics. Among the companies covered are DHL, Exel, OOCL, Nippon, UPS, FedEx, TNT, Schenker and Sembcorp. Financial detail, current customers and IT capabilities are a few of the areas covered for each 3PL.

Richard Armstrong, president of Armstrong & Associates states, “This report is an excellent source for those looking to find 3PLs in Asia. In preparing it, our partners at Transport Intelligence did a great job covering background and industry specifics. Asia Pacific Logistics – 2004, coupled with our Who’s Who In Logistics, offer the information coverage necessary for global supply chain managers.”

Asia Pacific Logistics and Who’s Who In Logistics? Armstrong’s Guide to Global Supply Chain Management are available from Armstrong & Associates.

About Armstrong & Associates: In business since 1980, Armstrong & Associates, Inc. has become a recognized leader in supply chain management consulting and market research. Armstrong’s Who’s Who guides are distributed worldwide and are the resource for shippers selecting third-party logistics providers, e-commerce fulfillment providers and web-based logistics solutions. Through its consulting expertise, Armstrong & Associates has fostered profitable growth for many supply-chain participants from small trucking companies to Fortune 500 shippers.

For more information contact:

Richard Armstrong
Armstrong & Associates, Inc.
100 Business Park Circle, Suite 202
Stoughton, WI 53589
Phone: 800-525-3915
Email: dick@3plogstics.com www.3plogistics.com

Warehouse Pricing Study Establishes Benchmarks for U.S.

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FOR IMMEDIATE RELEASE

Armstrong & Associates, Inc. 100 Business Park Circle, Suite 202 Stoughton, WI 53589 (800) 525-3915

Warehouse Pricing Study Establishes Benchmarks for U.S.

STOUGHTON, WI – A recently completed study of 3PL warehouse prices has for the first time established benchmarks for the United States. The study covers both contract and public warehousing.

Regional price differences are reported. Major metropolitan area prices are reported for principal U.S. logistics locations. The report tracks profitability by region in terms of operating margins, EBITDA and EBIT.

Lengths of contracts reviewed in the study were from 1-7 years. The study found that most contracts have 3 and 5 year terms.

In the report, components of standard warehouse pricing models are given. The major variables are space utilization, labor, administrative costs and margins.

Expected operating margins and profitability measures are compared to actual results for 3PLs in the study. These relationships are reviewed in detail and in reference to the “Negotiation Zone.” Statistical analyses were performed showing the effects on profitability of open book relationships and leasing vs. ownership.

“We undertook this study because we had a Japanese consulting client who wanted to know what and how 3PLs and commercial warehouses were charging for their services in the U.S.,” said Richard Armstrong, president of Armstrong & Associates, a supply chain management consultancy. “There was not a good source available and the only way to get the information was to put out an RFP. Our report is the first public explanation of what the real prices are in warehousing.”

The analysis emphasizes the growth of contract warehousing at the expense of public warehousing. The results indicate however, that profitability is not inherent in either of the models but owes more to company cultures and practices.

The complete study with appendices is available from Armstrong & Associates.

About Armstrong & Associates: Armstrong & Associates, Inc. is a supply chain management consulting firm specializing in market research, mergers and acquisitions and outsourcing. Armstrong & Associates publishes Who’s Who In Logistics. Recent research papers include Warehousing in the United States and Global Logistics Services Providers II. In addition, Armstrong & Associates maintains databases of warehousemen, freight forwarders and third-party logistics and distributing companies.

For more information, contact: Richard Armstrong (800) 525-3915 or email Dick@3PLogistics.com.

Source: Armstrong & Associates, Inc. 100 Business Park Circle, Suite 202 Stoughton, WI 53589 Phone: (608) 873-8929 Fax: (608) 873-5509 Website: www.3PLogistics.com

Top 30 Freight Brokers Identified by Armstrong & Associates; TIA

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FOR IMMEDIATE RELEASE

Armstrong & Associates, Inc. 100 Business Park Circle, Suite 202 Stoughton, WI 53589 (800) 525-3915

Top 30 Freight Brokers Identified by Armstrong & Associates; TIA

STOUGHTON, WI – A list of the 30 largest freight brokers in North America has been developed by Armstrong & Associates, Inc. with the assistance of the Transportation Intermediaries Association. The list includes nationally known logistics companies like C.H. Robinson, Hub, Exel Transportation and Landstar Logistics as well as several less well known but very capable transportation managers.

“This list is designed to provide visibility to an important part of the transportation industry that is easily overlooked,” said Richard Armstrong, President of Armstrong & Associates. “Most of these companies started as freight brokers and have developed into quality 3PLs. It’s time someone made it easier for transportation consumers to identify the members of the group.”

The list is contained in a short white paper titled Freight Brokers in North America, prepared by Armstrong & Associates. It is available by calling Armstrong & Associates at 800-525-3915 or it can be ordered online at Guides & Research.

About Armstrong & Associates:

Armstrong & Associates, Inc. is a supply chain management consulting firm specializing in market research, mergers and acquisitions and outsourcing.

For more information, contact: Richard Armstrong (800) 525-3915 or e-mail Dick@3PLogistics.com.

About TIA:

TIA is a professional and educational organization of the third-party logistics industry. It represents transportation intermediaries of all disciplines doing business in domestic and international commerce. TIA is the U.S. member of the International Federation of Freight Forwarder Associations (FIATA).

For more information, contact: Robert Voltman (703) 317-2140 or e-mail Voltman@tianet.org.

Source: Armstrong & Associates, Inc. 100 Business Park Circle, Suite 202 Stoughton, WI 53589 Fax: (608) 873-5509 Website: www.3PLogistics.com

U.S. 3PL Market Grows 7%: Outpaces Economy

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FOR IMMEDIATE RELEASE

Armstrong & Associates, Inc.
100 Business Park Circle, Suite 202
Stoughton, WI 53589
(800) 525-3915

U.S. 3PL Market Grows 7%: Outpaces Economy

STOUGHTON, WI – For the eighth consecutive year, U.S. growth in third-party, contract logistics has exceeded growth in the U.S. economy. Results for 2002 show increases in turnover, net revenues and net income. Turnover increased by 6.9% and net revenues by 7%. Net income increased from 1.7% in 2001 to 3% in 2002.

Results for individual companies varied widely. Our estimate for FedEx Services indicates a 40% shrinkage in contract logistics in FY 2002. At the same time, UPS Supply Chain Solutions divisions increased significantly. UPS Logistics was up 39% in net revenue, while UPS/Fritz increased by 28%. The FedEx and UPS contract logistics results reflect the strategic plans of the two companies. UPS, in a partial re-branding, is giving more emphasis to non-package operations. FedEx continues to devalue operations that do not put shipments exclusively into its trucks and airplanes.

The most profitable 3PLs continue to be transportation managers. C.H. Robinson, Expeditors and Landstar Logistics all had double-digit, after-tax net margins. All three of these companies had significant net revenue growth again this year. While turnover increased for the U.S. domestic transportation segment lead by Robinson and Landstar, net revenues for the segment were flat because 3PLs with leasing and IMC parent companies had reduced revenues.

The value-added warehousing 3PLs represented by Exel, CAT Logistics and UPS Logistics showed solid growth of 10.4% in net revenues. This segment grew by 11.5% in 2001. Most significantly, VAWD 3PLs improved their net income margins by from .7% to 1.7% in 2002. This segment has been plagued by under pricing of its value-added services. Tibbett & Britten has eliminated some unprofitable business. Exel and other majors are taking steps to improve profitability.

The freight forwarding 3PL segment net revenue grew at 5.7% following 6% growth in 2001. Net profitability margins improved from 2.8% in FY 2001 to 4.8% in 2002. This improvement is due to a narrowing of losses at Emery, the addition of UTi Worldwide and a realistic assessment of the net revenues of DHL Danzas in North America. Deutsche Post World net, the parent of DHL Danzas claims to use a “net revenue” model but allows purchased transportation to be incorporated in “net revenue.” As a result, we continue to fine tune our DHL Danzas estimates..

Dedicated contract carriage net revenue increased by 5.7% in 2002 after a flat 2001. Leasing company related dedicated carriers continued to lose market share. Cardinal, J.B. Hunt, Schneider, Swift and Werner all had double-digit growth. These dedicated operations spring from truckload carrier backgrounds and have the sustained advantage of relying on their parent company trucking networks to reduce backhaul miles and costs.

About Armstrong & Associates: Armstrong & Associates, Inc. is a supply chain management consulting firm specializing in market research, mergers and acquisitions and outsourcing. Armstrong & Associates publishes “Who’s Who Logistics? Armstrong’s Guide to Global Supply Chain Management.”

For more information, contact: Richard Armstrong (800) 525-3915 or e-mail Dick@3PLogistics.com.
Source: Armstrong & Associates, Inc.
100 Business Park Circle, Suite 202
Stoughton, WI 53589
Fax: (608) 873-5509
Website: www.3PLogistics.com

Who’s Who In Logistics Expands to Top 200 3PLs: Rates Major Firms

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Who’s Who In Logistics Expands to Top 200 3PLs: Rates Major Firms

CHICAGO, IL – The leading publication on contract logistics has added key new features. Ratings of 3PL/4PL capabilities, strengths and weaknesses, a quick evaluation matrix and more expert analysis are all part of the new “Who’s Who In Logistics? Armstrong’s Guide to Global Supply Chain Management.” The new quick evaluation matrix includes information on the top 200 logistics companies. The new edition of this comprehensive guide to global contract logistics contains detailed information on new American, European and Asian 3PL/4PLs. Detailed company information includes contacts and personnel, IT capabilities, logistics services offered, major customers and case studies.

The new guide covers the continued consolidation in third-party logistics. Important moves have been made by TPG, Deutsche Post, TNT, Exel, Ryder and other major players to expand their market shares. Leading American 3PLs continue to be targets.

IT systems have grown as key tools in the 4PL/LLP globalization kits. Modern IT capabilities are increasing as a major reason for outsourcing logistics functions. Supply chain management with optimization, order management, warehouse management and internet-based global track and trace are now necessary tools for global managers. The guide rates and explains systems for each 3PL/4PL.

Need industry summary information for the latest year? Key analysis and trends are presented for Armstrong’s core group of 40 key U.S. based 3PLs. These 3PLs handled nearly 60% of U.S. contract logistics business. Summaries of the number of employees, units in dedicated contract carriage and market focus and service by country are given.

“We have attempted to make our guide the leading source of contract logistics information,” said Richard Armstrong, president of Armstrong & Associates. “By significantly expanding the international sections, we have made it much easier for people to find 3PLs and 4PLs who can do the job. When we get the Internet version operating this summer, we will also have a premium tool for those who need day-to-day updates.”

The 10th edition of “Who’s Who In Logistics?” is published in two volumes. The guide has over 500 pages. It sells for $495 (hard copy only) or $995 (hard copy and MS-Access™ database).

About Armstrong & Associates: Armstrong & Associates, Inc. is a supply chain management consulting firm specializing in market research, mergers and acquisitions and outsourcing. Armstrong & Associates also publishes “Who’s Who In eCommerce Fulfillment? Armstrong’s Guide to eFulfillment Services Providers.”

For more information, contact: Richard Armstrong (800) 525-3915 or e-mail Dick@3PLogistics.com.

Source: Armstrong & Associates, Inc.

100 Business Park Circle, Suite 202
Stoughton, WI 53589
Fax: (608) 873-5509
Website: www.3PLogistics.com

UPS Winning the Global Logistics Battle

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UPS Winning the Global Logistics Battle

A new analysis of logistics and transportation companies indicates that UPS is in the strongest financial position to expand globally. The analysis compares UPS with major competitors FedEx, Deutsche Post and TPG. The analysis draws on the comparative financial results of major companies. UPS is beating its competitors significantly on operating margin, net income and other measures. The conclusions of the analysis are presented in a new report, “The Globalization of Logistics Services.” The report is an overview of the major integrators and logistics services providers. Exel, Danzas, AEI, Maersk, Neptune Orient/APL and Kuehne & Nagel are also profiled.

The report includes gross estimates for the logistics spend by continent. The estimates rank North America first, followed by Europe and Asia.

Included with the report is an appendix titled “An Overview of Air Freight and Container Markets.” This appendix summarizes critical data from public sources on freight airline size, market share and use of forwarders. Ocean container statistics include a list of top U.S. importers.

The report can be obtained for a handling charge of $19.95 from Armstrong & Associates, Inc. Call 800-525-3915 or e-mail Armstrong@3PLogistics.com.

____________________________________________________________________________

About Armstrong & Associates: Armstrong & Associates is a logistics management consulting firm specializing in outsourcing projects. Armstrong & Associates also publishes “Who’s Who in Logistics? Armstrong’s Guide to 3PLs & Global Logistics Services.”

For more information, contact: Richard Armstrong (800) 525-3915 or e-mail Dick@3PLogistics.com.

Source: Armstrong & Associates, Inc.
100 Business Park Circle, Suite 202
Stoughton, WI 53589
Fax: (608) 873-5509


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